Plans for a major housing development in south London, billed as the largest in Mitcham for a generation, have been finalised with a stark omission: not a single one of its 626 new homes will be classed as affordable.
Viability Concerns Scrap All Affordable Housing
Merton Council has approved a third and final set of proposals for the redevelopment of the former Mitcham Gasworks site. The latest application, signed off in late November 2025, increases the total number of homes from 579 to 626. However, it completely removes a previous commitment to provide 35 per cent affordable housing, moving instead to a 100 per cent private rented scheme.
Simon Lewis, Planning and Development Director for the developer St William, told the council's Development and Planning Committee that earlier plans were no longer deliverable. He stated the decision was driven by updated viability assessments, a term referring to a project's financial feasibility after covering all costs and planning obligations.
"Our second application, presented earlier this year, was designed to deliver a development consisting entirely of affordable housing," Lewis explained. "However, it was not possible to secure the necessary funding." He cited rising construction costs and the complexities of the brownfield gasworks site, which was demolished in 2021, as key pressures.
Community Outrage and Council Disappointment
The decision has provoked significant criticism from local councillors and community groups, who label the lack of affordable homes in such a large scheme as "unconscionable". Councillor Gill Manly, whose Mitcham Cricket Green ward includes the site, said it was a "slap in the face" for residents who have waited years for clarity.
Tony Burton, secretary of the Mitcham Cricket Green Community and Heritage civic society, expressed deep scepticism. He told the Local Democracy Reporting Service that his group has been unable to verify the developer's viability claims because Merton Council has refused to publish the full assessment following a Freedom of Information request.
"It is unconscionable that the largest new housing development in Mitcham for a generation should provide no affordable homes," Burton stated.
Glimmer of Hope and Scheme Changes
Despite the current plan, St William says it is in active discussions with both Merton Council and the Greater London Authority (GLA) to secure grant funding. The aim is to provide at least 146 homes at social rent. However, a final decision on this funding will not be known until at least April 2026, when the next round of GLA financing becomes available.
"We understand no one wants to see a scheme of this size with no affordable housing. We believe the best way to avoid this is to secure the necessary grant," Lewis added.
The approved application does include some modifications in response to local feedback. These include a reduction in building height facing Hay Drive and Portland Road, and an expansion of the public realm by approximately 460 square metres. The mix of homes also now features a higher proportion of smaller private units.
While acknowledging the regret over the lack of affordable housing, some councillors highlighted the wider benefits. Independent Councillor Edward Foley commented, "I hope it doesn’t happen again. It is a huge scheme and carries significant commercial risk. However, I believe it will be beneficial for that part of Mitcham."
The scheme now awaits the finalisation of legal agreements before construction can begin. A spokesperson for Merton Council confirmed the approval was subject to a legal agreement that "reasonable endeavours will be used to secure affordable housing."
